Vietnamese government to continue construction of Vung Ang Steel

Despite the fact that a government spokesman announced the rejection of the offer of investors from the Taiwanese company Formosa to create a special economic zone, construction in Ha Tinh will continue, which will require the use of large construction equipment, which will have to be delivered to the region, in contrast to the possibility of renting special equipment in St. Petersburg at http://transbalt.net .

Taiwanese Formosa earlier this year negotiated with Vietnamese Deputy Prime Minister Hoang Trung Hai to obtain permission to build a Vung Ang steel and iron SEZ plant in the central Ha Tinh province, as well as to obtain rights to special incentives when doing business. The company plans to build a deep water port to deliver products and equipment for the steel industry and receive tax breaks that exempt from import tariffs on equipment, machinery and materials.

Formosa will also ask for a plot of land for accommodation and improvement for 15,000 employees. The proposal came in light of the negative impact on Formosa employees during workers' protests in mid-May against the illegal placement of a Chinese deepwater oil rig at Haiyang Shiyou-981 inside Vietnam's economic zone and the disputed continental shelf.

This suggests that the Vietnamese government has extended political support for the company. Formosa's complex steel and cast iron project will be commissioned in early 2015. The metallurgical facility will have a total production capacity of about 22.5 million tons per year.

Nearly all of the workers involved in the Vung Ang project in the Ha Tin area have returned to work after the riots ended, according to an official from the main government office. Construction progress on the Formosa project has slowed due to an incident in May. To complete the project, the Taiwanese investor asked the Vietnamese government to provide a specific policy for the project that would focus on important administrative procedures to attract investors.